Horizon scandal: Post Office scandal victims to be exonerated and compensated as Rishi Sunak proposes new law
The prime minister has said a new law will be introduced so people wrongly convicted in the Horizon scandal are “swiftly exonerated and compensated”.
In the first Prime Minister’s Questions of the year, Rishi Sunak said he plans to make sure those convicted as part of the Post Office scandal get exonerated through an act of parliament.
As well as announcing the introduction of new primary legislation – which has yet to be published or given a timetable for voting – Mr Sunak said those who were part of the group litigation order against the Post Office would be eligible for an “upfront payment of £75,000”.
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The government has come under increased pressure to take action on the Horizon scandal following the airing of ITV drama Mr Bates Vs The Post Office last week.
More than 700 sub-postmasters and sub-postmistresses were prosecuted for accounting errors relying on data from the faulty Horizon software.
Once they are exonerated, the government has confirmed sub-postmasters and sub-postmistresses will be eligible for at least £600,000 compensation, depending on their circumstances.
The scheme applies to England and Wales.
Speaking in the House of Commons, Mr Sunak said: “Mr Speaker, this is one of the greatest miscarriages of justice in our nation’s history.
Protesters outside the Post Office Horizon IT inquiry in London in 2022
“People who worked hard to serve their communities had their lives and their reputations destroyed through absolutely no fault of their own.
“The victims must get justice and compensation. Sir Wyn Williams’ inquiry is undertaking crucial work to undo, to expose what went wrong, and we’ve paid almost £150m in compensation to over to 2,500 victims.
“But today I can announce that we will introduce new primary legislation to make sure that those convicted as a result of the Horizon scandal are swiftly exonerated and compensated.
“We will also introduce a new upfront payment of £75,000 for the vital [Group Litigation Order] group of postmasters.”
The prime minister’s spokesman said the intention was to have the legislation introduced within weeks and compensation paid out by the end of the year.
The prime minister announced the measurs in the House of Commons
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Kevin Hollinrake, the postal minister, provided an update to the Commons following PMQs on how they plan to deal with people who did commit a crime that get their conviction overturned.
He said that all those claiming compensation will sign a statement of truth to say they did not commit the crimes of which they were accused.
“Anyone subsequently found to have signed such a statement untruthfully will be putting themselves at risk of prosecution or fraud,” Mr Hollinrake said.
The minister admitted this was not “foolproof”, but it was a “proportionate” device “which respects the ordeal with which these people have already suffered”.
He also said the government was considering whether people who had their appeals refused already would have their convictions overturned.
Numerous ways to fast-track the overturning of convictions had been mooted prior to today’s announcement.
Some had called for a mass appeal before the Court of Appeal, while others wanted legislation to overturn the convictions or even a pardon from the King.
It is not clear exactly how the mechanics of the Commons overturning hundreds of prosecutions will work.
Sir Keir welcomed the news
Sir Keir Starmer, the Labour leader, indicated earlier this week that his party would support an attempt through law to overturn the convictions.
Responding to Mr Sunak today, Sir Keir said: “Mr Speaker, I heard what the prime minister just said about the Post Office scandal – it is a huge injustice.
“People lost their lives, their liberty and their livelihood, and they’ve been waiting far too long for the truth, for justice, and for compensation.
“So I’m glad the prime minister is putting forward a proposal.
“We will look at the details, and I think it’s the job of all of us to make sure that it delivers the justice that is so needed.”
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Last year, the government announced that every wrongly convicted sub-postmaster and sub-postmistress would be offered £600,000 in compensation.
In 2019, the Post Office agreed to pay £58m to 555 sub-postmaster and sub-mistresses.
Business
Vivergo: How US-UK trade deal could bring about collapse of huge renewable energy plant in Hull
The smell of yeast still hangs in the air at the Vivergo plant in Hull but the machines have fallen quiet.
More than 100 lorries usually pass through here each day, carrying 3,000 tonnes of wheat. It is milled, fermented and distilled. The final product is bioethanol, a renewable fuel that is then blended into E10 petrol.
This is a vast operation. It took several years to build, with considerable investment, but it is on the verge of closing down. Management and staff are holding out for a last-minute reprieve from the government but time is running out.
It’s been a turbulent journey. The plant was already being annihilated by US rivals, losing about £3m a month. Vivergo and Ensus, based in Teesside, blamed regulations that enable US companies to earn double subsidies.
They were pushing for regulatory change but then a killer blow: The US-UK trade deal, which allows 1.4 billion litres of American ethanol into the UK tariff-free (down from 19%).
“We’ve effectively given the whole of the UK market to the US producers,” said Ben Hackett, managing director at Vivergo.
“If we were to have the same support that the US industry has, if we could use genetically modified crops, we wouldn’t need that tariff. We would be able to compete. If we had the same energy costs. We wouldn’t need those tariffs.”
The government has the weekend to come up with a plan that could keep the business running. If it fails, Vivergo will begin issuing redundancy notices to its 160 staff.
Ben Hackett
It’s a devastating prospect for workers, many of them live in Hull and are nervous about alternative opportunities in the area.
Mike Walsh, a logistics manager who has been working at the plant for 14 years, said: “It’s not a great place to be at the moment. It’s a very well paid, very high-skilled role and they’ve (Vivergo) given everybody an opportunity in an area that doesn’t pay that well…. The jobs market isn’t as good as what people would like. So it does impact the local economy.”
He called on the government to “help us, save us, give this industry a future”.
His colleague Claire Wood, lead productions engineer, said: “I moved here after a career in oil and gas for 10 years, partly because I want to be part of the transition to renewable fuels. I can see so much potential here and it’s absolutely devastating to know that this place might be closed very, very shortly and that all that potential just goes away.”
Thousands more could be affected. Haulage companies may have to lay off truck drivers and farmers could also suffer a blow.
Vivergo makes bioethanol using wheat. That wheat is bought from farms from Yorkshire and Lincolnshire.
Claire Wood
The National Farmers Union has sounded the alarm, saying: “Biofuels are extremely important for the crops sector, and their domestic demand of up to two million tonnes can be very important to balance supply and demand and to produce up to one million tonnes of animal feed as a by-product.”
Another bioproduct is carbon dioxide. The gas can be captured and used to put the fizz in drinks or injected into packaging to preserve food.
If Vivergo and Ensus were to go, Britain would lose as much as 80% of its output of carbon dioxide. Supplies are already tight across Europe, meaning this decision could compound shortages across a range of sectors, from meat-packing to healthcare.
The industry is calling on the government to help. Vivergo says it needs temporary financial support but that the government must create a regulatory and commercial environment in which it can thrive.
It says rules that award double subsidies to companies that use waste product in their bioethanol must be changed. At present, these rules are being used by US companies that make ethanol from Uldr – a by-product of processing corn. They argue this is not a genuine waste product.
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Another option is to grow the market. Industry leaders are calling on ministers to increase the mandated renewable fuel content in petrol from 10% to 15% and for an expansion into aviation fuels. That would allow British companies to carve out a space.
The government has been locked in talks with the company since June.
It said: “We will continue to take proactive steps to address the long-standing challenges it faces and remain committed to a way forward that protects supply chains, jobs and livelihoods.”
However, the time for talking is almost over.
Mr Hackett said he had no idea how the government would respond but he was firm with his stance, saying: “In times of global uncertainty, losing that energy certainty and supply from the UK is a problem.
“I think what they’re missing out on is the future growth agenda. We’re the foundation on which the green industrial strategy can be built. We make bioethanol that today decarbonises transport. Tomorrow it will decarbonise marine. It will decarbonise aviation.”
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